Solana price increased by 14% in the past week as the overall market surged back up following Bitcoin’s recovery. The successful Solana Breakpoint conference in Singapore had no shortage of announcements that might have contributed to the price surge over the past week. Solana could be set for a significant rally from the current price that might catapult it to new all-time highs.
Solana Price Analysis Forecasts Reversal
SOL price is currently trending above the 200-day simple moving average, which suggests the asset is bullish. Additionally, the SOL price broke out of a double-bottom bullish reversal pattern on September 19 and has been on an uptrend since then.
Solana price prediction suggests that the asset has an additional 8% upside potential to reach $165, the next significant resistance level.
Based on historical price action, if Solana price closes the daily candle above $161, there is a possibility it could surge by 14% to reach $187 or even higher if sentiment remains bullish.
SOL Comeback Likely As DAA Stabilize At 400% Above
Solana network active wallet addresses hit an all-time high on September 10 but quickly dropped following reduced meme coin hype on the network. The good news is the daily active addresses have stabilized between 2.7 and 3.3 million over the last month, over 3X from the stable zone three months ago. This shows network growth, which could translate into a price surge.
Derivative traders are increasingly becoming bullish on Solana chain, as reflected in their trading activity. There was over $210 million worth of aggregated Longs compared to $131 million in shorts across Binance, OKX, and Bybit. This imbalance shows traders are bullish on Solana price as they think it could increase in the future.
Moreover, the Crypto Derivatives Visualization Screener plots a graph of Open interest change versus price change, showing both the OI and price increased over the last 24 hours. When this happens, it shows traders are entering Longs, which is a bullish signal for the Solana price.
Given the robust fundamentals and growth prospects, the chances of Solana price increase from the current price are high.
Conclusion
Even though not discussed at the Breakpoint conference, meme coins contributed to the success of the Solana chain and could drive prices to new all-time highs if embraced. Some of the best meme coins on Solana have surged easily to over $1 billion market cap, showing how, even though developers want Solana to be more than a casino with cheap transaction fees, these tokens’ role in the network’s growth is inarguable.
Frequently Asked Questions (FAQs)
Technical analysis from Coingape suggests that Solana is currently bullish. The price is trending above the 200-day simple moving average and has broken out of a double-bottom bullish reversal pattern as of September 19. This indicates an ongoing uptrend, with an additional potential upside of 8% that could take the price to $165, the next key resistance level.
If Solana closes above $161, it could potentially surge by another 14% to reach $187, or even higher, provided the market sentiment remains positive. This level is a critical marker for further bullish momentum.
Meme coins, while not discussed in detail at the Breakpoint conference, have played a significant role in the success of the Solana network. Some of the top meme coins on Solana have surpassed $1 billion in market cap, demonstrating their impact. If embraced further, these tokens could drive Solana’s price to new all-time highs.
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Evans Karanja
Evans Karanja is a crypto analyst and journalist with a deep focus on blockchain technology, cryptocurrency, and the video gaming industry. His extensive experience includes collaborating with various startups to deliver insightful and high-quality analyses that resonate with their target audiences. As an avid crypto trader and investor, Evans is passionate about the transformative potential of blockchain across diverse sectors. Outside of his professional pursuits, he enjoys playing video games and exploring scenic waterfalls.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/solana-price-forecast-heres-why-sol-comeback-will-be-explosive/
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